un general assembly – thematic debate 31 july 2007 michael liebreich, chairman & ceo © new...

UN General Assembly – Thematic Debate31 July 2007

Michael Liebreich, Chairman & CEO

© New Energy Finance, 2007

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© New Energy Finance, 2007© New Energy Finance, 2007

$70.9bn

$49.6bn

$27.5bn

2004 2005 2006

Global Investment in Clean Energy 2004 - 2006Global Investment in Clean Energy 2004 - 2006

80% Growt

h

43% Growt

h

Grossed-up estimate based on disclosed deals. New investment only.

Source: New Energy Finance

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UN Report: Global Trends in Sustainable Energy Investment 2007 UN Report: Global Trends in Sustainable Energy Investment 2007

“Transactions leap to record $100 billion in 2006; Renewables Shed Fringe Image”

Press Release, United Nations Environment Programme Sustainable Energy Finance Initiative

“The report clearly shows that […] the finance sector believes the existing technologies of today will ‘decarbonise’ the energy mix”

Yvo de Boer, Executive SecretaryUnited Nations Convention on Climate Change

Source: United Nations

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Source: New Energy Finance, American Stock Exchange

Wilder Hill New Energy Finance Global Innovation Index (NEX), Dec 2002 to July 2007Wilder Hill New Energy Finance Global Innovation Index (NEX), Dec 2002 to July 2007

The NEX consists of the world’s largest, most liquid and most representative clean energy stocks. 30 December 2002 = 100

50

100

150

200

250

300

350

400

450

NEX

AMEX Oil

NASDAQ

S&P 500

Launch of PBD

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Global Asset Financing by Sector2004 – 2007Global Asset Financing by Sector2004 – 2007

Grossed-up estimate based on disclosed deals. Numbers in brackets refer to total deals. Includes new build & refinancings, excludes project acquisitions. *2007 = annualised YTD

$42,285m*(504)

$37,201m (423)

$26,009m (438)

$11,763m (249)

2004 2005 2006 2007

Wind Biomass & Waste Biofuels Geothermal & Mini-Hydro Marine & Solar

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Global VC/PE Investment by Type2001 - 2007Global VC/PE Investment by Type2001 - 2007

Grossed-up estimate based on disclosed deals. Figures in brackets represent (deals with disclosed value/total number of deals). Includes PE – Buy-outs. *2007= annualised YTD


$809m (50/72)

$934m (73/87)

$1,239m (107/137)

$2,273m (172/210)

$5,317m (252/300)

$8,585m (329/433)

$9,835m* (127/398)

2001 2002 2003 2004 2005 2006 2007

Venture Capital PE for Companies PIPE OTC

7


76

64 9

84

21

48

1815

291

62

414

64 92 6367

Asia &Oceania

Europe,Middle East & Africa

Americas

127

561

700

Venture Capital/Private Equity Funds Known to be Targeting Clean Energy, June 2007Venture Capital/Private Equity Funds Known to be Targeting Clean Energy, June 2007

Excludes Chinese incubators; based on 1,388 funds known to New Energy Finance to be targeting clean energy technology.


Total Funds= 1,388

Incubators(158)

Venture Capital(769)

VC & PrivateEquity(135)

PrivateEquity(197)

Corporate Venture(129)

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Global Public Market Transactions by Region 2001 - 2007Global Public Market Transactions by Region 2001 - 2007

Figures in brackets represent (IPOs/ secondary offerings/ convertible and other). Figures are new equity raised only, not total equity raised. 2007 = annualised YTD


$10,359m (26/28/37)$10,876m (25/50/46)

$5428m (14/40/41)

$769m (4/8/23)$438m (4/6/14)$291m (2/4/4)$365m (1/2/4)

2001 2002 2003 2004 2005 2006 2007

AMER EMEA ASOC

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Global Investment by RegionGlobal Investment by Region

$27.5bn

$49.6bn

$70.9bn

2004 2005 2006

Other DevelopingLatin AmericaAfricaIndiaChinaOther OECDEU 27United States

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1999 2000 2001 2002 2003 2004 2005 2006 2007Q1

$m

Private

Public

Money Committed to Carbon Assets ~ $11.8bn to dateMoney Committed to Carbon Assets ~ $11.8bn to date

58 carbon investment vehicles (37 public, 21 private)

Source: New Carbon Finance

Total money required to meet Kyoto = $30bn to

2012

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In summaryIn summary

There is no shortage of capital for clean energy companies and projects

We are seeing very rapid growth rates in investment in all asset classes and countries

Investment is diversifying:– From Europe to global– From wind to multi-sector– From power generation to energy efficiency and infrastructure

Wind industry in particular has reached scale and is maturing and consolidating rapidly

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Issues and Challenges…Issues and Challenges…

Although capital is abundant, not enough is flowing to the developing world – particularly slower developing countries

Valuations are currently in risky territory, particularly in the light of recent capital market instability

Solar PV sector is being held back by silicon bottleneck, and when this eases, prices and margins are likely to collapse

Biofuels will be more about global trade than about technology

US carbon markets will be minor players unless there is a federal system

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About the companyAbout the company

New Energy Finance

New Carbon Finance

www.newenergyfinance.com

www.newcarbonfinance.com

tel: +44 20 7467 6760

email: [email protected]

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